Thong Guan Industries Bhd. commits to a $7 million investment in Batang Integrated Industrial Estate, Central Java.

PENANG, Malaysia — Thong Guan Industries Bhd., one of Asia-Pacific’s largest plastic packaging companies, has confirmed a $7 million investment in the Batang Integrated Industrial Estate (KIT Batang) in Central Java. The commitment was formalised with the signing of a Land Reservation Agreement at Wisma Indonesia in Penang on 3rd March.

The agreement was signed by Thong Guan’s Managing Director, Dato’ Ang Poon Chuan, and KIT Batang’s Director of Marketing and Development, Indri Septa Respati. The ceremony was witnessed by Indonesia’s Consul General in Penang, Wanton Saragih, and Director of the Indonesian Investment Promotion Centre (IIPC) in Singapore, Andria Buchara, representing the Ministry of Investment and Downstreaming/BKPM.

Consul General Saragih expressed gratitude for securing the investment, noting that initial discussions and economic promotions began in April 2024. “By maintaining honest, trustworthy, and prudent communication with Thong Guan and collaborating with the Ministry of Investment and Downstreaming/IIPC Singapore and KIT Batang, we have achieved this investment commitment today,” he stated.

Thong Guan Industries Bhd., which already operates a factory in China, produces up to 150,000 tonnes annually and reports an annual turnover of approximately RM1.2 billion. The company plans to construct a factory on over five hectares in KIT Batang to produce various plastic products, including wrapping plastic, garbage plastic, and plastic film, targeting both domestic and global markets.

Managing Director Dato’ Ang Poon Chuan highlighted Indonesia’s market potential and the facilities offered by KIT Batang as key investment factors. “We view KIT Batang as a strategic partner supporting our vision to expand globally, particularly in Indonesia, one of the world’s largest markets. The world-class facilities and government support make KIT Batang a very attractive choice for us,” he explained.

KIT Batang, also known as Batang Integrated Industrial Estate, is a National Strategic Project designed to meet global investment needs. The industrial estate offers infrastructure that enhances network expansion and connectivity, along with fiscal facilities, and is on track to obtain Special Economic Zone status. With various incentives and conveniences, KIT Batang aims to become a hub for export-oriented industries, boosting production efficiency and strengthening Indonesia’s competitiveness in the global market.

Source: Ministry of Foreign Affairs, Indonesia